ChromaDex Announces $5.25 Million Registered Direct Offering

Published 6:30 AM ET Mon, 6 June 2016
Globe Newswire

IRVINE, Calif., June 06, 2016 (GLOBE NEWSWIRE) -- ChromaDex Corp. (NASDAQ:CDXC), an innovator of proprietary health, wellness, and nutritional ingredients, that creates science-based solutions for dietary supplement, food and beverage, skin care, sports nutrition, and pharmaceutical products, announced today that it has entered into an agreement with one investor to purchase $5.25 million of the Company’s common stock in a registered direct offering. The fees associated with this transaction were minimal as no underwriter or placement agent was used in the offering.

The Company agreed to sell 1,117,022 shares of its common stock at a per share price of $4.70, for gross proceeds of approximately $5.25 million. All of the shares of common stock were offered pursuant to an effective shelf registration statement. There were no warrants associated with this transaction.

Proceeds from the transaction will be used to pay off the Company’s existing debt facility. The amount of principal currently outstanding on the Debt facility is $4,554,659.04, and the total payoff amount including accrued interest and other payments due is approximately $4,858,000. Upon final payment, the facility will terminate.

Frank Jaksch, Jr., CEO and co-founder of ChromaDex, commented, “After a very successful reverse stock split and uplisting to NASDAQ, this financing was a very cost efficient way for us to pay down our debt and prepare the company for its next phase of growth. A $5.25 million investment from existing shareholders, at the highest valuation the Company has received in a financing, is a great vote of confidence in the Company’s performance and opportunities going forward."

Jaksch continued, “The development of nicotinamide riboside for Cockayne Syndrome and other pharmaceutical indications is starting to accelerate and we are currently evaluating strategic options for these undervalued pharmaceutical opportunities.”

A shelf registration statement relating to the shares of common stock issued in the offering has been filed with, and declared effective by, the Securities and Exchange Commission (the "SEC"). A prospectus supplement relating to the offering has also been filed with the SEC. Copies of the prospectus supplement and accompanying prospectus, when available, may be obtained at the SEC's website at http://www.sec.gov. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any shares of common stock. No offer, solicitation or sale will be made in any jurisdiction in which such offer, solicitation or sale is unlawful.

About ChromaDex:

ChromaDex leverages its complementary business units to discover, acquire, develop and commercialize patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. In addition to our ingredient technologies unit, we also have business units focused on natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (known as Spherix Consulting). As a result of our relationships with leading universities and research institutions, we are able to discover and license early stage, IP-backed ingredient technologies. We then utilize our in-house chemistry, regulatory and safety consulting business units to develop commercially viable ingredients. Our ingredient portfolio is backed with clinical and scientific research, as well as extensive IP protection. Our portfolio of patented ingredient technologies includes NIAGEN® nicotinamide riboside; pTeroPure® pterostilbene; PURENERGY®, a caffeine-pTeroPure® co-crystal; ProC3G®, a natural black rice containing cyanidin-3-glucoside; IMMULINA®, a spirulina extract; and Purple Corn derived from a proprietary non-GMO purple corn hybrid which contains an extraordinarily high level of anthocyanins. To learn more about ChromaDex, please visit www.ChromaDex.com.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as “expects”, “anticipates”, “intends”, “estimates”, “plans”, “potential”, “possible”, “probable”, “believes”, “seeks”, “may”, “will”, “should”, “could” or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company’s business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2016, the Company’s Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC’s website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.

Statements in this press release have not been evaluated by the Food and Drug Administration. Products or ingredients are not intended to diagnose, treat, cure or prevent any disease.